Increases to CEO Compensation Might Be Put On Hold For Now at AQ Group AB (publ) (STO:AQ)

Key Insights

• AQ Group's Annual General Meeting to take place on 23rd of April
• Salary of kr2.63m is part of CEO James Ahrgren's total remuneration
• The overall pay is 200% above the industry average
• AQ Group's total shareholder return over the past three years was 127% while its EPS grew by 22% over the past three years

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Under the guidance of CEO James Ahrgren, AQ Group AB (publ) (STO:AQ) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 23rd of April. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for AQ Group

Comparing AQ Group AB (publ)'s CEO Compensation With The Industry

At the time of writing, our data shows that AQ Group AB (publ) has a market capitalization of kr13b, and reported total annual CEO compensation of kr5.7m for the year to December 2024. Notably, that's an increase of 8.8% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at kr2.6m.

In comparison with other companies in the Swedish Electrical industry with market capitalizations ranging from kr9.8b to kr31b, the reported median CEO total compensation was kr1.9m. Accordingly, our analysis reveals that AQ Group AB (publ) pays James Ahrgren north of the industry median. What's more, James Ahrgren holds kr8.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	kr2.6m	kr2.3m	46%
Other	kr3.0m	kr2.9m	54%
Total Compensation	kr5.7m	kr5.2m	100%

Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. AQ Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at AQ Group AB (publ)'s Growth Numbers

AQ Group AB (publ)'s earnings per share (EPS) grew 22% per year over the last three years. It saw its revenue drop 4.6% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has AQ Group AB (publ) Been A Good Investment?

Most shareholders would probably be pleased with AQ Group AB (publ) for providing a total return of 127% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at AQ Group.

Switching gears from AQ Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.